USA and Innovation

The May 2011 edition of the McKinsey Quarterly carried an article "Translating innovation into US growth: An advanced-industries perspective " which attempted to answer the question "Is America losing its innovation edge? " and opined that "The United States faces a future in which the elements of economic leadership are moving abroad. Reversing these trends will require the private and public sectors to collaborate."

I responded with a few comments of my own which have been included on the McKinsey Quarterly website:

Skilled immigrants are one of America’s greatest competitive advantages- the US has the unique advantage of having amongst its citizenry people from all parts of the globe. This “integrated diversity” is not yet fully utilized by corporations to its full potential. No other country operating in the global arena has this advantage. You may not find a Fijian or an Icelander in China or India but you would very well do in the US. And that’s a strength which needs to be leveraged.

Let us celebrate the "integrated diversity" of US and the pursuit of the "American Dream". Both of which contribute to the continued growth and prosperity of the US in a global economy.

More at Immigrants as Entrepreneurs: creating jobs, enhancing prosperity

What do you think? Is America losing the innovation edge? If yes, how do we get the edge back?

India, U.S. are pursuing same dream

An article by me published in the Rochester Democrat and Chronicle today.

http://www.democratandchronicle.com/apps/pbcs.dll/article?AID=2007708200312

India, U.S. are pursuing same dream
Deepak SethGuest essayist

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(August 20, 2007) — Aug. 15 marked India's 60th Independence Day and hence the 60th anniversary of Indo-U.S. relations — a journey marked with lots of interesting twists and turns.
It started off on a high note with the U.S, Constitution inspiring the framers of India's constitution. But then, India veered onto a socialistic path with state control of enterprises and alignment, albeit loosely, with the Soviet Union during the Cold War. The United States also aligned itself with India's then-arch-rival Pakistan.

Since then, much water has flown down the Ganges and the Potomac. The United States now values India as a strategic partner. India has liberalized its economy. The two countries are on the brink of ratifying a nuclear collaboration treaty signed a couple of years ago. Some think this is due to India's growing economic clout as a nuclear power while others think it is a manifestation of America's desire to prop up India as a potential check to China's aspirations as a global superpower.

Trade between India and the United States is booming. A big chunk of Boeing's current order book comes from India. Immigrants from India founded more engineering and technology companies in the United States from 1995 to 2005 than immigrants from the United Kingdom, China, Taiwan and Japan combined. Of all immigrant-founded companies, 26 percent have Indian founders. Locally, in Rochester, India-born entrepreneurs including I.C. Shah (ICS Telecom), Dilip Vellodi (The Sutherland Group), Bal Dixit (Fireproof materials), Ram Shrivastava (Larsen Engineers) and Makhan Singh (restaurateur) have created hundreds of jobs and contributed significantly to the local economy. Indian doctors are strong pillars of the local health care system. As they have worked hard to realize their "American Dream," they have enhanced the prosperity of their adopted land. More than 2.5 million people from India now call America home.

In this era of globalization, the American Dream has become the Indian Dream. The American Dream has spread to all corners of the world due to the selfless actions of the thousands of U.S. volunteers helping with education, health care and disaster relief; the veterans who fought or gave their lives during the world wars to rid the world of oppression and tyranny; the writings of American thinkers and philosophers; American media; the American tourist and explorer who trudge the farthest reaches of the globe; the American researcher and inventor whose discoveries benefit all mankind; U.S. universities, which are a global magnet for students; and, yes, the U.S. corporation that has made the likes of McDonald's and Starbucks global icons.
India faces challenges of elephantine proportions in its march toward economic prosperity for all its citizens, but the world's largest democracy is living up to the dreams of 1947. And it is doing so in close alignment with a country that has championed democracy and freedom for more than 200 years: the United States.

Seth, of Brighton, is a native of India and member, Board of Contributors.

Fourth July : What it means for me....

Fireworks, Festivities, Family, Food, Fun and much more........ but most importantly FREEDOM. As we immerse ourselves in the celebration of this joyous day many tend to forget its underlying significance and what it means not only to all of us living in the United States but to countless others all over the globe. The cherished ideals of Life, Liberty and Pursuit of happiness on which the Founding Fathers laid the keel of this great nation have served as shining beacons to other countries as they got rid of the colonial yoke and emerged as fledgling democracies. The Constitution of my country of birth - India was inspired greatly by the American Constitution.

In this day and era of Globalization, the "American Dream" is a "Global Dream" and for many of us like me who are not economic, political, social or war refugees, it is this Dream which bonds us to this great nation. A bond which gets strengthened with every passing July 4th.

The American Dream has percolated all reaches of the world due to the selfless actions of the thousands of American volunteers helping with education, medicine and disaster relief; the veterans who fought or gave up their lives during the World Wars to rid the world of oppression and tyranny ; the writings of American thinkers and philosophers; American Media (“Hollywood”) ; the American Tourist and Explorer who trudges the farthest reaches of the globe; the American Researcher and Inventor whose discoveries benefit all mankind; the American University which is a global magnet for students and academia ; and yes the American Corporation which has made the likes of McDonald or Starbucks global icons.

It's not the American Gun but the American Volunteer/ Businessman/ Scientist/ Tourist who has taken this dream to more people and that's the way it should be. We should want people to be peacefully co-opted into the "Dream" rather than being forced into it by "Shock and Awe".

"FREEDOM" is the cornerstone of the American Dream and every July 4 is a reminder to me that, even as we revel on this day we need to be aware of the responsibility placed on us to ensure that these Freedoms we take for granted are not eroded or encroached upon by overzealous leaders in the guise of external or internal threats either to line their own pockets or to impose their line of thought on everybody else. The inherent checks and balances created by the triad of an independent Executive, Legislature (Congress) and Judiciary needs to be preserved at all costs. No Rasputins (extra constitutional authorities) should be allowed to chip away the American Dream.

Wish everyone a great Independence Day !! Happy FREEDOM !!

Immigrants as Entrepreneurs: creating jobs, enhancing prosperity

The immigration debate over the last few months has been focused on illegal immigration, the burdens it places on local economies and the plight of illegal immigrants. What has got sidelined is the continued contribution of legal immigrants in creating jobs and enhancing prosperity. Immigrants have been and continue to be the lifeblood of the US economy. By their entrepreneurial zeal and work ethic they have contributed to the unparalleled stature of the US as a colossus in the global economy.

A recent study report (released January 7, 2007) by a team of student researchers in the Master of Engineering Management program of the Pratt School of Engineering at Duke University led by Executive in Residence/Adjunct Professor Vivek Wadhwa, Research Scholar Ben Rissing, and Sociology Professor Gary Gereffi, has documented the economic and intellectual contributions of immigrant technologists and engineers to US competitiveness -- to understand the sources of US global advantage as well as what the US can do to keep its edge.

A key finding of the study was that there was at least one immigrant key founder in 25.3% of all engineering and technology companies established in the U.S. between 1995 and 2005 inclusive. Together, this pool of immigrant-founded companies was responsible for generating more than $52 billion in 2005 sales and creating just under 450,000 jobs as of 2005. The researchers also estimated, based on an analysis of the World Intellectual Property Organization (WIPO) patent databases, that foreign nationals residing in the U.S. were named as inventors or co-inventors in 24.2% of international patent applications filed from the U.S. in 2006. These immigrants come to the U.S. from all over the world to take advantage of the business, technology and economic opportunities in the country.

An interesting finding was that these immigrant-founded businesses are unevenly located across the country. California and New Jersey represented hot spots for immigrant-founded engineering and technology business; Surprisingly, New York despite being the state with the second highest percentage of the population being foreign-born (19.6% vs. 24.9% for California in 2000), only had nearly 25% of its companies established by immigrant key founders (vs. 38.8% for California, 37.6% New Jersey, Michigan 32.8%, even Georgia, Virginia, Massachusetts, Illinois and Arizona fared better). New York (5.2%) also featured third after California (34%) and New Jersey (7.3%) in a breakdown of states where immigrant founded engineering and technology companies are based. California with Silicon Valley appears to be the hotbed of creativity and entrepreneurism. New York has significant catching up to do. Some food for thought for the state's economic policy czars.

I was pleased to learn that immigrants from my country of origin (India) have founded more engineering and technology companies in the US in the past decade (1995-2005) than immigrants from the U.K., China, Taiwan and Japan combined. Of all immigrant-founded companies, 26% have Indian founders. Locally, in Rochester, Indian origin entrepreneurs like IC Shah (ICS Telecom) ,Dilip Vellodi (Sutherland group),Bal Dixit (Fireproof materials) ,Bhoopinder Mehta (Indus Group- hotels and restaurants),Ram Shrivastava( Larson Engineers),Makhan Singh (Restauranteur) have created hundreds of jobs and contributed significantly to the local economy. As they have worked hard to realize their "American Dream", they have enhanced the prosperity of their adopted land.

This research showed that immigrants have become a significant driving force in the creation of new businesses and intellectual property in the U.S. — and that their contributions have increased over the past decade. It also established that the key to maintaining US competitiveness in a global economy is to understand America’s strengths and to effectively leverage these. Skilled immigrants are one of America’s greatest advantages- the US has the unique advantage of having amongst its citizenry people from all parts of the globe. This “integrated diversity” is not yet fully utilized by corporations to its full potential. No other country operating in the global arena has this advantage. You may not find a Fijian or an Icelander in China or India but you would very well do in the US. And that’s a strength which needs to be leveraged.

Let us celebrate the "integrated diversity" of US and the pursuit of the "American Dream". Both of which contribute to the continued growth and prosperity of the US in a global economy.

Link to the Report : http://memp.pratt.duke.edu/downloads/americas_new_immigrant_entrepreneurs.pdf